Accounting for depreciation of fixed assets
According to the law, the following methods of calculating depreciation in accounting can be used:
- write-off of the value by the number of years of the useful life;
- method of decreasing balance (linear);
- write-off of the value of the funds in a volume proportional to the quantity of the products produced.
Accounting and depreciation of fixed assets is performedone of the methods for a group of homogeneous objects during the entire useful life period. Charges can be suspended when finding a fixed asset for modernization or reconstruction by decision of the management, as well as when the facility is being kept for more than 3 months.
By recording depreciation of fixed assets,determine the annual amount of deductions. Applying the linear method, the calculation is performed from the accounting of the initial value of fixed assets, determined at the beginning of the period and calculated on the basis of the time of application of the depreciation rate.
Applying the method of the reduced balance, the basis for calculation is the residual value of the main assets at the beginning of the reporting period (year).
When you write off the cost by the sum of the numbers of years, the calculationproduce, based on the original value of the object and the annual ratio in which the numerator represents the number of years remaining until the end of the life of the main asset, and the denominator is the sum of years (numbers) of service life.
By recording depreciation of fixed assets withusing the method of writing off in proportion to the volume of work, the starting point is the indicator of the volume of work or output for the reporting period and the ratio of the initial value of fixed capital and the estimated amount of work performed during the entire useful life of the fixed asset.
For fixed assets in the reporting year, depreciationusually is charged each month in the amount of 1/12 of the calculated annual amount, regardless of the method of calculation used. In seasonal production, this amount is evenly charged throughout the firm's activities in the reporting year.
Important for the enterprise hasplanning and accounting for depreciation of fixed assets, since it makes it possible to calculate their volume for the future period, which will allow planning the cost of production and forecast the financial results of the company.
Initial data for calculating depreciationindicators of the value of fixed assets at the beginning of the planned period, prospective and annual plans for the introduction of fixed assets, which come from other organizations and enterprises on the basis of the decisions taken; depreciation rates; data on the disposal of funds.
Accounting for depreciation of fixed assets and all calculations are made based on the capabilities of computer technology and accounting features. To do this, perform the following works.
Group the main operating funds anddetermine their value in accordance with uniform depreciation rates. At the same time, self-depredating facilities (vehicles, equipment and machinery) with fully expired normative service lives are excluded.
The average annual value of the total volume of the main depreciable funds is determined by inventory objects (groups).
Calculate the amount of depreciation for each object or group, multiplying their value by the appropriate rate, taking into account the correction factors that reflect the actual operation of the means of labor.
For the planned year, the total volumedepreciation for all fixed assets, calculating the amount of depreciation, calculated for all groups without taking into account the self-deprecated funds that relate to equipment, machinery and transport.